FY14 2nd Quarter Financial Results FIT HYBRID Honda Motor Co., Ltd. - - PowerPoint PPT Presentation

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FY14 2nd Quarter Financial Results FY14 2nd Quarter Financial Results FIT HYBRID Honda Motor Co., Ltd. (Japan) October 30, 2013 1 FY14 2nd Quarter Financial Results Table of Contents - FY14 2nd Quarter Financial Results - FY14 Financial

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SLIDE 1

1

FY14 2nd Quarter Financial Results

FY14 2nd Quarter Financial Results

FIT HYBRID (Japan)

Honda Motor Co., Ltd.

October 30, 2013

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SLIDE 2

2

FY14 2nd Quarter Financial Results

  • FY14 2nd Quarter Financial Results
  • FY14 Financial Forecasts
  • Dividend

Table of Contents

Tetsuo Iwamura Executive Vice President

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SLIDE 3

3

FY14 2nd Quarter Financial Results 1,600 1,900 2,200 2,500 500 1,000 1,500 2,000 2,500 3,000 3,500 1,000 1,100 1,200 1,300

汎用事業

Results Summary

  • Increased unit sales of automobiles, mainly in North America
  • Increased unit sales of motorcycles in Asia due to new model introductions
  • An increase in operating profit by 70%, to JPY 171.4 billion due to

foreign currency effects caused by depreciation of the Japanese yen

Consolidated Unit Sales 2,585 869

1,288 1,295 Net Sales

Net Sales / Operating Income

2,271.2

2,890.2

20 40 60 80 100 120 140 160 180

100.8

171.4 FY13 FY14

Operating Income 2,304

Outline of FY14 2nd Quarter Results Summary (Consolidated)

Unit (thousand)

Motorcycles Automobiles Power Products

Yen (billion) 500 600 700 800 900

816

869

2nd Quarter Results FY2013 and FY2014

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SLIDE 4

4

FY14 2nd Quarter Financial Results

2,304 2,585

1,800 2,300

二輪事業

816 869

500 600 700 800 900

四輪事業

3,806 4,216

3,000 3,500 4,000

二輪事業

996 1,047

700 900 1,100

四輪事業

Change FY14 FY13 Honda Group Unit Sales

+ 0.5% 1,295 1,288

Power Products

+ 5.1% 1,047 996

Automobiles

+ 10.8% 4,216 3,806

Motorcycles 2Q Results (3 Months) Change FY14 FY13 Consolidated Unit Sales

+ 0.5% 1,295 1,288

Power Products

+ 6.5% 869 816

Automobiles

+ 12.2% 2,585 2,304

Motorcycles 2Q Results (3 Months) Honda Group Unit Sales

  • Increased sales of motorcycles, mainly in Asia due to new model introductions
  • Automobile unit sales increased mainly in North America, which saw strong market growth, and in

Japan, where sales of mini vehicles have been favorable Honda Group Unit Sales

1,288 1,295

1,000 1,100 1,200 1,300 1,400

汎用事業

Motorcycles

Consolidated Unit Sales

1,288 1,295

1,000 1,100 1,200 1,300 1,400

汎用事業

汎用パワープロダクツ事業

FY14 2nd Quarter Unit Sales

(thousand) (thousand) Unit (thousand) Unit (thousand) Automobiles Power Products Motorcycles Automobiles Power Products

FY13 FY14

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SLIDE 5

5

FY14 2nd Quarter Financial Results

  • 5.9%

4.4%

Operating margin

Change FY14 FY13

2Q Results (3 Months)

Financial Results + 15.2% 31.6 27.4

Equity in income of affiliates

+ 46.4% 120.3 82.2

Net income attributable to Honda Motor Co., Ltd.

+ 55.8% 165.5 106.2

Income before income taxes

+ 70.0% 171.4 100.8

Operating income

+ 27.3% 2,890.2 2,271.2

Net sales & other operating revenue

+ 21.16 66.79 45.63

EPS attributable to Honda Motor Co., Ltd. (Yen)

131.9 135.9 100.8 176.0 184.9

171.4

50 100 150 200 1Q 2Q 3Q 4Q

FY13 FY14

Operating Income

Financial Summary

  • Revenue increased by 27.3%, due mainly

to increased revenue in automobile and motorcycle business operations, as well as favorable foreign currency translation effects

  • Operating income increased by 70%,

primarily due to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A expenses and increased depreciation expenses related to new plant start-up

5.0% 5.4% 7.2% 4.4%

5.9% 6.5%

0% 1% 2% 3% 4% 5% 6% 7% 8% 1Q 2Q 3Q 4Q

FY13 FY14

Operating Margin

Yen down by 33 yen

131 98 Euro

Yen down by 20 yen

99 79 US Dollar

FY14 2nd Quarter Financial Results (Consolidated)

Yen (billion)

*1 *2

Average Rates (Yen)

For *1 and *2, please refer to footnotes on page 34 Yen (billion)

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6

FY14 2nd Quarter Financial Results

  • 6.2%

5.9%

Operating margin

Change FY14 FY13 1st Half Results (6 Months) Financial Results

+ 31.6% 63.4 48.2

Equity in income of affiliates

+ 13.5% 242.8 213.9

Net income attributable to Honda Motor Co., Ltd.

+ 12.2% 337.6 301.0

Income before income taxes

+ 28.7% 356.4 276.8

Operating income

+ 21.6% 5,724.3 4,707.1

Net sales & other operating revenue

+ 16.04 134.75 118.71

EPS attributable to Honda Motor Co., Ltd. (Yen)

130 99

Yen down by 29 yen Yen down by 20 yen

101

Euro

79

US Dollar

Change FY14 FY13 Honda Group Unit Sales (Consolidated Unit Sales)

  • 1.0%

(- 1.0%)

2,884

(2,884)

2,913

(2,913) Power Products

+ 2.6%

(+ 3.7%)

2,046

(1,727)

1,995

(1,665) Automobiles

+ 7.2%

(+ 6.1%)

8,270

(4,956)

7,717

(4,670) Motorcycles 1st Half Results (6 Months)

FY14 1st Half Financial Results (Consolidated)

（thousand） *1 *3

Yen (billion)

For *1 and *3, please refer to footnotes on page 34

Average Rates (Yen)

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7

FY14 2nd Quarter Financial Results

  • 6.4%

5.5%

Operating margin

+ 212.8 + 47.2 + 276.1 + 235.1 + 2,222.0

amount Change

+ 58.0% + 57.2% + 56.5% + 43.2% + 22.5%

%

  • + 15.0
  • 15.0
  • Change from

previous forecasts

580.0 130.0 765.0 780.0 12,100.0 FY14

Forecasts

82.7

Equity in income of affiliates

367.1

Net income attributable to Honda Motor Co., Ltd.

488.8

Income before income taxes

544.8

Operating income

9,877.9

Net sales & other

  • perating revenue

FY13

Results

+ 118.10 321.81 203.71

EPS attributable to Honda Motor Co., Ltd. (Yen) Yen down by 1 yen Yen down by 1 yen

127

(1H 130 / 2H 125)

97

(1H 99 / 2H 95)

Yen down by 19 yen Yen down by 13 yen

108

Euro

84

US Dollar

FY14 Financial Forecasts (Consolidated)

Yen (billion) For *1 and *4, please refer to footnotes on page 34

Average Rates (Yen)

*1 *4

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SLIDE 8

8

FY14 2nd Quarter Financial Results

+ 125.2 + 181.1 + 46.0 + 335.9

amount Change

+ 81.0% + 93.5% + 44.3% + 10.4%

%

+ 20.0 + 15.0

  • 20.0
  • 50.0

Change from previous forecasts

280.0 375.0 150.0 3,580.0 FY14

Forecasts

154.7

Net income

193.8

Ordinary income

103.9

Operating income

3,244.0

Net sales

FY13

Results

FY14 Financial Forecasts (Parent Company Only)

Yen (billion)

Yen down by 1 yen Yen down by 1 yen

127

(1H 130 / 2H 125)

97

(1H 99 / 2H 95)

Yen down by 19 yen Yen down by 13 yen

108

Euro

84

US Dollar Average Rates (Yen)

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SLIDE 9

9

FY14 2nd Quarter Financial Results

Increase / Decrease from FY13

( + 4 ) ( + 1 ) ( + 1 ) + 1 + 1 76 19 19 19 19

FY13

( 20 )

4th quarter End

( 20 )

3rd quarter End

20

1st quarter End

20

2nd quarter End

( 80 ) FY14

(Expectation)

Dividend per Share Fiscal Year

Dividend

(Yen)

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10

FY14 2nd Quarter Financial Results

  • FY14 2nd Quarter Financial Results

Net Sales and Other Operating Revenue Change in Income before Income Taxes Business & Geographical Segment Information

  • FY14 Financial Forecasts

Table of Contents

Kohei Takeuchi Operating Officer and Director Chief Financial Officer

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11

FY14 2nd Quarter Financial Results

( + 14.9 %) ( + 6.6 %) ( + 5.2 %) ( - 1.9 %)

Excluding currency translation effects + 168.2 ( + 7.4 % )

2,271.2

+ 46.2 + 116.4 + 6.7

  • 1.2

+ 450.6

2,890.2

+ 618.9 ( + 27.3 % )

Net sales & other

  • perating revenue

FY13 2Q FY14 2Q

Motorcycle Business

309.7 418.0

Automobile Business

1,766.2 2,229.0

Financial Services Business

130.4 170.0

Power Product & Other Businesses

64.9 73.1

Total

2,271.2 2,890.2

Market average rates

US Dollar

79 99

Euro

98 131

Net Sales and Other Operating Revenue <FY14 2nd Qtr>

Yen (billion)

FY13 2Q FY14 2Q

Motorcycle Business Automobile Business Financial Services Business Power Product & Other Businesses Currency Effects

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12

FY14 2nd Quarter Financial Results

( + 6.6 %) ( + 2.6 %) ( + 4.7 %) ( - 2.8 %)

Excluding currency translation effects+ 146.5 ( + 3.1 %）

4,707.1

+ 43.0 + 94.8 + 12.2

  • 3.6

+ 870.5

5,724.3

+ 1,017.1 ( + 21.6 %)

Net sales & other

  • perating revenue

FY13 6 Months FY14 6 Months

Motorcycle Business

656.3 814.9

Automobile Business

3,656.7 4,425.5

Financial Services Business

261.6 335.4

Power Product & Other Businesses

132.4 148.3

Total

4,707.1 5,724.3

Market average rates

US Dollar

79 99

Euro

101 130

Yen (billion)

Motorcycle Business Automobile Business Financial Services Business Power Product & Other Businesses Currency Effects

FY13 1st Half FY14 1st Half

Net Sales and Other Operating Revenue <FY14 1st Half>

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13

FY14 2nd Quarter Financial Results

Income before Income taxes + 59.3 ( + 55.8 %)

106.2 165.5

+ 34.6

  • 17.6
  • 36.0
  • 4.1

+ 93.6 + 22.0

  • 33.3

Operating Income + 70.5 ( + 70.0 % ) Other Income & Expenses

  • 11.2

Operating Income

100.8

Operating Income

171.4

  • Currency effects due to difference between

average sales rates and transaction rates

  • 23.2
  • Other
  • 10.1

<Decrease Factors>

  • Advertisement expenses,

etc. <Increase Factors>

  • Increase in sales volume and model mix, etc.

<Increase Factors>

  • Cost reduction efforts,

etc. <Decrease Factors>

  • Increase in depreciation,

etc.

Change in Income before Income Taxes <FY14 2nd Qtr>

Yen (billion) Revenue, model mix, etc. Cost Reduction, etc. Increase in SG&A Increase in R&D Currency Effects Unrealized gains and losses related to derivative instruments (Attachment 2) Other

FY13 2Q FY14 2Q

*Please refer to Attachment 1 regarding currency effects

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14

FY14 2nd Quarter Financial Results

Income before Income taxes + 36.5 ( + 12.2 % )

337.6

  • 12.0
  • 35.1
  • 36.1
  • 13.8

+ 176.6 + 14.4

  • 57.4

Operating Income + 79.5 ( + 28.7 % ) Other Income & Expenses

  • 42.9

301.0

  • Currency effects due to difference between

average sales rates and transaction rates - 57.1

  • Other
  • 0.2

<Increase Factors>

  • Cost reduction effort,

etc. <Decrease Factors>

  • Increased expenses related to new plant start-up
  • depreciation,

etc. Operating Income

276.8

Operating Income

356.4 Change in Income before Income Taxes <FY14 1st Half >

Yen (billion) *Please refer to Attachment 1 regarding currency effects Revenue, model mix, etc. Cost Reduction, etc. Increase in SG&A Increase in R&D Currency Effects Unrealized gains And losses related to derivative instruments (Attachment 2) Other

FY13 1st Half FY14 1st Half

<Decrease Factors>

  • Advertisement expenses,

etc.

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SLIDE 15

15

FY14 2nd Quarter Financial Results

15

Japan

59 57 51 50 54 63

North America

59 60 62 69 62 68

Europe

60 38 29 52 52 38

Asia

3,285 3,162 3,225 3,363 3,479 3,536

Other Regions

448 489 448 428 407 511

Total

3,911 3,806 3,815 3,962 4,054 4,216

3,911 3,815 3,962 4,054 4,216 3,806

3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300

Dream Neo (India)

+ 410

（ + 10.8% ） <India>

  • positive impact of Dream Neo introduction,

increased Activa sales <Indonesia>

  • positive impact of CB150R, Verza150 introduction,

increased BeAT sales <Brazil>

  • positive impact of PCX, NXR125BROS introduction

Motorcycle - Honda Group Unit Sales

(Motorcycles + All-Terrain Vehicles, etc.)

Unit (thousand) FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q

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16

FY14 2nd Quarter Financial Results

45.5 42.5 25.2 22.8 25.4 36.8

10.6% 7.4% 6.7% 10.7%

10.9% 8.2%

  • 10

10 30 50 70 90 110 130 150

  • 12%
  • 8%
  • 4%

0% 4% 8% 12%

4,216

（2,585）

4,054

(2,371)

3,962

(2,490)

3,815

(2,350)

3,806

(2,304)

3,911

(2,366)

Honda Group Unit Sales

(Consolidated Unit Sales)

396.8

1Q FY14

418.0

2Q FY13

375.3

4Q

307.8 309.7 346.6

Net Sales 3Q 2Q 1Q

( + 35.0 % ) + 108.3 (Currency Effect + 62.0)

<Increase Factors>

  • Increased sales volume and model mix,
  • Positive currency effects, etc

<Decrease Factors>

  • Increased SG&A expenses, etc

( + 79.3%)

Motorcycle Business

Net Sales/Operating Income (Margin)

Unit (thousand) Yen (billion) Operating Income Operating Margin Yen (billion) FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q

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SLIDE 17

17

FY14 2nd Quarter Financial Results

17

999 986 1,033 999 1,047 996

940 960 980 1,000 1,020 1,040 1,060

+ 51

( + 5.1% )

Japan

185 169 138 200 140 180

North America

450 404 454 423 459 447

Europe

39 44 38 50 40 40

Asia

262 301 279 280 285 309

Other Regions

63 78 77 80 75 71

Total

999 996 986 1,033 999 1,047 <North America>

  • Increased sales of ACCORD, CR-V and CIVIC
  • positive impact of fully remodeled ACURA MDX

<Japan>

  • positive impact of N-ONE introduction,

increased N BOX sales <Asia>

  • positive impact of AMAZE introduction

Automobiles - Honda Group Unit Sales

Unit (thousand) FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q

MDX (North America)

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18

FY14 2nd Quarter Financial Results

96.3 77.2 70.9 100.6 80.1 37.1

5.3% 3.7% 3.6% 4.4%

3.6% 2.1%

  • 30

70 170 270

  • 1%

2% 5% 8% 11%

1,047

（869）

999

(858)

1,033

(902)

986

(841)

996

(816)

999

(849)

Honda Group Unit Sales

(Consolidated Unit Sales)

2,200.9

1Q FY14

2,233.1

2Q FY13

2,140.6

4Q

1,918.4

1,769.7

1,894.7

Net Sales 3Q 2Q 1Q

( + 26.2 % )

<Increase Factors>

  • Increased sales volume and model mix,
  • Positive currency effects, etc

<Decrease Factors>

  • Increased SG&A expenses, etc

( + 115.8%)

Automobile Business

Net Sales/Operating Income (Margin)

Unit (thousand) Yen (billion)

+ 463.3 (Currency Effect + 346.3)

Operating Income Operating Margin Yen (billion) FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q

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SLIDE 19

19

FY14 2nd Quarter Financial Results

19

1,625 1,195 1,963 1,589 1,295 1,288

500 1,000 1,500 2,000 2,500

+ 7

( + 0.5% )

Japan

82 88 63 81 63 93

North America

758 436 426 984 828 504

Europe

236 150 206 412 237 156

Asia

421 462 341 348 364 426

Other Regions

128 152 159 138 97 116

Total

1,625 1,288 1,195 1,963 1,589 1,295

HRR216 (lawn mower)

<North America>

  • increased sales of GCV160/190 and other engines used

in lawn mowers and pressure washers

  • increased sales of HRR216 and HRAX217 lawn mowers

<Asia>

  • decreased sales of GX160/GK200 and other engines

used in water pumps

Power Products - Honda Group Unit Sales

Unit (thousand) FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q

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SLIDE 20

20

FY14 2nd Quarter Financial Results

0.07 0.05

  • 2.2
  • 7.4
  • 0.8

1.3

  • 3.3%

0.1% 0.1%

  • 8.9%
  • 1.1%

1.7%

  • 20
  • 10

10 20 30 40

  • 10%
  • 5%

0% 5% 10% 15% 20%

1,295

（1,295）

1,589

(1,589)

1,963

(1,963)

1,195

(1,195)

1,288

(1,288)

1,625

(1,625)

Honda Group Unit Sales

(Consolidated Unit Sales)

77.9

1Q FY14

75.9

2Q FY13

83.1

4Q

71.3

67.2

69.9

Net Sales 3Q 2Q 1Q

( + 12.9 % )

<Increase Factors>

  • Positive currency effects, etc

<Decrease Factors>

  • Increased SG&A expenses, etc

Power Product & Other Businesses

Net Sales/Operating Income (Margin)

Unit (thousand) Yen (billion) Operating Income Operating Margin Yen (billion)

+ 8.6 (Currency Effect + 9.3)

FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q

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SLIDE 21

21

FY14 2nd Quarter Financial Results

44.6 40.9 38.1 40.8 46.5 38.2

30.5% 27.6% 26.4% 26.6%

27.0% 28.7%

20 40 60 80 100 120 140 160 180 200 0% 10% 20% 30% 40%

7,404.6

7,206.8 6,765.3 6,197.2

5,577.7

5,567.6

Total Assets of Finance Subsidiaries

172.5

2Q

167.9

1Q FY14 FY13

154.9

4Q

138.1

133.1

134.0

Net Sales 3Q 2Q 1Q

（ + 29.6% ）

<Increase Factors>

  • Positive currency effects, etc

( + 21.7% )

Unit (thousand) Yen (billion)

Financial Services Business

Total Assets/Net Sales/Operating Income (Margin)

Operating Income Operating Margin

+ 39.4 (Currency Effect + 32.8)

FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q

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SLIDE 22

22

FY14 2nd Quarter Financial Results

  • 2.2

79.1 62.2 137.7

0.5 91.2 88.1 176.5

  • 50

50 100 150 200

+ 41.7% + 15.3% (9.5%) (3.8%) (- 1.6%) (29.6%) (0.3%) (26.8%) (4.0%) (10.8%)

1H 1H 1H 1H FY14 FY14 FY13 FY14 FY13 FY14 FY13 FY13 (－) (－) (2,884) (2,913) (1,727) (1,665) (4,956) (4,670)

3,664.5 1,995

Automobile Business

4,434.1 2,046 137.2 2,913

Power Product and Other Businesses

153.9 2,884 340.5 267.1 814.9 656.3

Net Sales

－ － 8,270 7,717

Honda Group Unit Sales

(Consolidated Unit Sales)

Financial Services Business Motorcycle Business

+ 28.1%

Net Sales/Operating Income (Margin) by Business Segment <FY14 1st Half >

Unit (thousand) Yen (billion) Operating Income : Yen (billion) Operating Margin : (%)

1H 1H 1H 1H FY14 FY13 FY14 FY14 FY13 FY14 FY13 FY13

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SLIDE 23

23

FY14 2nd Quarter Financial Results

  • 8.7
  • 13.5

30.0 26.7 36.4 10.5

46.0 49.2 60.0 18.6

  • 20

20 40 60

2Q 2Q 2Q 2Q 2Q

693.8

FY14 FY13

539.4

Asia

FY14 FY14 FY13 FY14 FY13 FY14 FY13 FY13

1,054.7

North America

1,471.9 144.5

Europe

174.4 280.4 229.6 1,014.4 925.0

Net Sales

Other Regions Japan

+ 64.0% + 72.1% + 64.9% + 76.9%

Net Sales/Operating Income (Margin) by Geographical Segment <FY14 2nd Qtr>

Yen (billion)

Operating Income

Yen (billion)

2Q 2Q 2Q 2Q 2Q FY14 FY13 FY14 FY14 FY13 FY14 FY13 FY14 FY13 FY13

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SLIDE 24

24

FY14 2nd Quarter Financial Results

  • 16.3
  • 23.3

91.0 108.9 68.1 22.8

117.8 111.4 113.7 24.0

  • 50

50 100

+ 22.5% + 8.2% + 66.9% + 5.5%

Net Sales/Operating Income (Margin) by Geographical Segment <FY14 1st Half >

1H 1H 1H 1H 1H

1,400.6

FY14 FY13

1,052.2

Asia

FY14 FY14 FY13 FY14 FY13 FY14 FY13 FY13

2,269.4

North America

2,973.2 292.4

Europe

350.4 521.1 450.0 1,990.3 1,931.7

Net Sales

Other Regions Japan

Yen (billion)

Operating Income

Yen (billion)

1H 1H 1H 1H 1H FY14 FY13 FY14 FY14 FY13 FY14 FY13 FY14 FY13 FY13

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SLIDE 25

25

FY14 2nd Quarter Financial Results

20.7 21.4 13.0 31.7

31.6 27.4

10 20 30 40 50 60 70

+ 4.1

( + 15.2% )

25.3 18.0 25.1 20.8 13.9 28.3

From Asia

Change in Equity in Income of Affiliates

Yen (billion) FY14 FY13 1Q 2Q 4Q 3Q 2Q 1Q Yen (billion)

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SLIDE 26

26

FY14 2nd Quarter Financial Results

Excluding currency translation effects + 12.1 ( + 4.9 % )

+ 18.6

250.7

  • 4.9

+ 0

  • 1.5

+ 40.8

303.7

+ 52.9 ( + 21.1 % )

130 99 303.7 6.1 0.2 272.1 25.1 FY14 1H 101

Euro

79

US Dollar

Market average rates

Business Segment FY13 1H

Motorcycle Business

26.6

Automobile Business

217.1

Financial Services Business

0.1

Power Product & Other Businesses

6.7

Total

250.7

Consolidated Capital Expenditures <FY14 1st Half >

Yen (billion) Motorcycle Business Automobile Business Financial Services Business Power product & Other Businesses Currency Translation Effects

FY13 1st Half FY14 1st Half

* Capital expenditures in results aforementioned exclude investment in operating leases, capital leases and intangible assets

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SLIDE 27

27

FY14 2nd Quarter Financial Results

  • FY14 2nd Quarter Financial Results

Net Sales and Other Operating Revenue Change in Income before Income Taxes Business & Geographical Segment Information

  • FY14 Financial Forecasts

Table of Contents

Kohei Takeuchi Operating Officer and Director Chief Financial Officer

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SLIDE 28

28

FY14 2nd Quarter Financial Results

Motorcycles

17,320 1,845 14,800 170 280 225 FY14

Revised Forecasts

  • 80
  • 80

+50

  • 5
  • 35
  • 10

Change Change FY14

Revised Forecasts

FY14

Previous Forecasts

Change FY14

Revised Forecasts

FY14

Previous Forecasts

FY14

Previous Forecasts

  • 20

495 515 300 300 1,925

Other Regions

6,000 1,485 965 2,740 315 4,430 1,325 185 1,795 825 17,400 14,750 175 315 235 965 185

Europe

4,430 1,325 1,795 825 6,200 1,720 2,715 285

+30

Japan

  • 200

Total

  • 235

Asia

+25

North America

15,494 17,400 17,320 4,014 4,430 4,430 6,071 6,200 6,000

  • 80

( - 0.5%)

± 0

( ± 0%)

  • 200

( - 3.2%)

Automobiles Power Products

Unit (thousand)

FY13 FY14

Previous Forecast

FY14

Revised Forecast

FY13 FY14

Previous Forecast

FY14

Revised Forecast

FY13 FY14

Previous Forecast

FY14

Revised Forecast

Forecast: Honda Group Unit Sales

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SLIDE 29

29

FY14 2nd Quarter Financial Results

10,650 1,845 8,130 170 280 225 FY14

Revised Forecasts

  • 350
  • 80
  • 220
  • 5
  • 35
  • 10

Change Change FY14

Revised Forecasts

FY14

Previous Forecasts

Change FY14

Revised Forecasts

FY14

Previous Forecasts

FY14

Previous Forecasts

  • 20

495 515 300 300 1,925

Other Regions

6,000 1,485 965 2,740 315 3,670 575 185 1,795 815 11,000 8,350 175 315 235 965 185

Europe

3,670 575 1,795 815 6,200 1,720 2,715 285

+30

Japan

  • 200

Total

  • 235

Asia

+25

North America

9,510 11,000 10,650 3,408 3,670 3,670 6,071 6,200 6,000

  • 350

( - 3.2%)

  • 200

( - 3.2%)

± 0

( ± 0%)

Forecast: Consolidated Unit Sales

Motorcycles Automobiles Power Products

Unit (thousand)

FY13 FY14

Previous Forecast

FY14

Revised Forecast

FY13 FY14

Previous Forecast

FY14

Revised Forecast

FY13 FY14

Previous Forecast

FY14

Revised Forecast

slide-30
SLIDE 30

30

FY14 2nd Quarter Financial Results

  • 6.4%

5.5%

Operating margin

+ 212.8 + 47.2 + 276.1 + 235.1 + 2,222.0

amount Change

+ 58.0% + 57.2% + 56.5% + 43.2% + 22.5%

%

  • + 15.0
  • 15.0
  • Change from

previous forecasts

580.0 130.0 765.0 780.0 12,100.0 FY14

Forecasts

82.7

Equity in income of affiliates

367.1

Net income attributable to Honda Motor Co., Ltd.

488.8

Income before income taxes

544.8

Operating income

9,877.9

Net sales & other

  • perating revenue

FY13

Results

+ 118.10 321.81 203.71

EPS attributable to Honda Motor Co., Ltd. (Yen) Yen down by 1 yen Yen down by 1 yen

127

(1H 130 / 2H 125)

97

(1H 99 / 2H 95)

Yen down by 19 yen Yen down by 13 yen

108

Euro

84

US Dollar

FY14 Financial Forecasts (Consolidated)

Yen (billion) For *1 and *4, please refer to footnotes on page 34

Average Rates (Yen)

*1 *4

slide-31
SLIDE 31

31

FY14 2nd Quarter Financial Results

Income before Income taxes + 276.1 ( + 56.5 % )

488.8 765.0

+ 143.6 + 20.0

  • 129.0
  • 47.5

+ 248.0 + 72.0

  • 31.1

Operating Income + 235.1 ( + 43.2 % ) Other Income & Expenses

+ 40.9

Operating Income

780.0

Operating Income

544.8

Forecast: Change in Income before Income Taxes

Yen (billion) Revenue, model mix, etc. Cost Reduction, etc. increase in SG&A Increase in R&D Currency Effects

Unrealized gains and losses related to derivative instruments

Other

FY13

FY14 Revised Forecasts

slide-32
SLIDE 32

32

FY14 2nd Quarter Financial Results

780.0 765.0

+ 12.0

  • 12.0

± 0

  • 5.0

Operating Income± 0 ( ± 0 % ) Other Income & Expenses

  • 15.0

Income before Income taxes - 15.0 ( - 1.9 % )

Operating Income

780.0

Operating Income

780.0

± 0 ± 0

  • 10.0

FY14 Previous Forecast FY14 Revised Forecasts

Yen (billion) Revenue, model mix, etc. Cost Reduction, etc. increase in SG&A Increase in R&D Currency Effects

Unrealized gains and losses related to derivative instruments

Other

Forecast: Change in Income before Income Taxes

slide-33
SLIDE 33

33

FY14 2nd Quarter Financial Results

+ 69.8 + 83.4 + 106.4

Change

  • + 10.0
  • Change from

previous forecasts

560.2 286.6 593.6 FY13

Results

630.0 370.0 700.0 FY14

Forecasts

R&D expenses Depreciation and Amortization Capital expenditures *

*

Forecast: Capital Expenditures, Depreciation, R&D Expenses

Yen (billion)

* Capital expenditures and Depreciation and amortization in results and forecast aforementioned exclude investment in operating leases,

capital leases and intangible assets

slide-34
SLIDE 34

34

FY14 2nd Quarter Financial Results

34

Caution with Respect to Forward-Looking Statements:

This slide contains forward-looking statements about the performance of Honda, which are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time.

Accounting standards:

Our consolidated financial standards are prepared in conformity with U.S. generally accepted accounting principles.

Notice on the Factors for Increases and Decreases in Income:

With respect to the discussion above of the change in operating income, management has identified the factors set forth below and used what it believes to be a reasonable method to analyze the respective changes in such factors. Each of these factors is explained below. Management has analyzed changes in these factors at the levels of the Company and its material consolidated subsidiaries. (1)“Foreign currency effects” consist of translation adjustments, which come from the translation of the currency of foreign subsidiaries’ financial statements into Japanese Yen, and foreign currency adjustments, which result from foreign-currency-denominated sales, which, at the levels of the Company and those consolidated subsidiaries which have been analyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen. (2) With respect to “cost reduction and effects of raw material cost fluctuations”, management has analyzed cost reduction and effects of raw material cost fluctuations at the levels of the Company and its material foreign manufacturing subsidiaries in North America, Europe and other regions. (3) With respect to “changes in net sales and model mix”, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted in increases/decreases in profit, as well as certain

  • ther reasons for increases/decreases in net sales and cost of sales.

(4) With respect to “selling, general and administrative expenses”, management has analyzed reasons for an increase/decrease in selling, general and administrative expenses from the previous fiscal year net of currency translation effects.

*1 Net income attributable to company for period indicated. EPS attributable to Honda Motor Co., Ltd., is calculated based on weighted average number of shares outstanding as shown below: *2: 2nd Quarter Results FY13: 1,802,299,000, FY14: 1,802,295,000 (page 5) *3: 1st Half Results FY13: 1,802,299,000, FY14: 1,802,295,981 (page 6) *4: Fiscal Year Results and Forecast FY13: 1,802,298,819, FY14: 1,802,295,000 (pages 7 and 30)

slide-35
SLIDE 35

35

FY14 2nd Quarter Financial Results

+ 23.2 + 20.6

Currency effect associated with sales transaction

+ 96.2 + 49.8

Currency effect from translation

  • f foreign financial statements

(impact on operating income)

+ 119.4

  • 57.1

+ 80.4 + 0.9 + 17.3 + 4.2 + 57.9 FY14 1st Half

Average Rates (Yen)

Change FY14 2nd Qtr FY13 2nd Qtr

FY14 2nd Qtr

Yen down by 20 yen

99 79

+ 30.6

JPY / USD

Yen down by 33 yen

131 98

+ 2.7

JPY / Euro

― ― ―

+ 6.5

JPY / Others

― ― ―

+ 4.2

Transactions between other currencies

+ 43.8

Difference of average rates (Impact on Operating income)

  • 23.2

Difference between transaction rates and average sales rates

(Impact on Other income & expenses)

+ 70.4

Total

*1 *2 *3

  • Currency Effects-

(effects associated with sales transactions and translation effects) (Attachment 1)

Yen (billion) *1:Impact of YOY difference of FOREX to be used for booking revenue of foreign currency transactions *2:Impact of YOY difference between average FOREX and hedge rates during the period *3:Effect due to the difference of the rate used for translating Honda’s overseas subsidiaries’ financial statements denominated in foreign currencies into Japanese yen with the corresponding period of the fiscal year

slide-36
SLIDE 36

36

FY14 2nd Quarter Financial Results

+ 24.6 + 0.1

  • 0.0

+ 24.6

FY13

1st Half + 39.1 + 0.0

  • 10.4

+ 49.5

FY14

+ 14.4

  • 0.0
  • 10.3

+ 24.9

Change

  • 4.5
  • 0.0
  • 3.5
  • 0.9

FY13

2nd Qtr + 17.5

  • 0.0
  • 5.5

+ 23.1

FY14

+ 22.0 + 0.0

  • 2.0

+ 24.0

Change

Others Total Interest rate swap / Currency swap Foreign currency forward

  • Unrealized Gains and Losses Related to Derivative Instruments -

(Attachment 2)

Yen (billion)

slide-37
SLIDE 37

37

FY14 2nd Quarter Financial Results